Industry outlook for the oil and gas industry 2019
3: Pressure builds in the oil and gas supply chain
We see pressure building in the supply chain. More than a third (39%) of respondents to our survey expect to make more use of contractors in 2019, and suppliers are more likely to recruit than buyers this year. Despite these prospects, suppliers are still feeling the pinch. They are less confident than buyers about achieving their revenue and profit targets.
We assess how suppliers will respond as the market rebalances over the next few years. Two thirds of respondents predict increased supply-chain consolidation in 2019, for example. Some think suppliers will start to charge more, and three quarters believe that new business models will be required to achieve cost efficiencies.